Living Life in the Cloud

I just read a post called; "Uninstall Now" from what I believe might be a very brave person for even attempting this experiment if you will and I hope he succeeds. I feel that software as we know it is on a cusp and that our computing devices are merely a URL storage device and a browser to allow us to access our tools from anywhere without being tied to software versions and installing upgrades. I have believed for the last 8 years that this was possible and I may even try to join David Rae in this adventure! Good Luck David!
As a side note: NowSource has always been an SaaS model. Design and architecture have fully been based on web accessibility so that users do not worry about updates and versions, they have access to the latest version everyday and with out worry or hassle.

e-Sourcing Tools

This is a great article and basically what I have been saying for years...e-Sourcing Tools — Means to an End by Andy Sealock. The first three paragraphs sum it all up in my mind. e-sourcing tools can have all the functionality in the world but if your processes do not back it up, they might as well be shelfware. I believe this is where NowSource has distinguished itself, as we do not just provide you with a "sourcing application" we review your processes with you and assist in providing the functionality to fit YOUR process. Not too make the process fit the tool. I believe this to be the fundamental difference in our tool vs. other tools on the market.

Day 2 On-Demand Exihibtion

Show floor is picking up right away this morning. Yesterday I met with a purchasing manager of a cooperative buying group that has just recently been organized. So do you think cooperative purchasing is a viable option in the print industry? Co-ops, have waxed and waned over the years but overall cooperative purchasing is a powerful tool to help organizations see real value for their purchasing dollar. Systems like Cross-Wind/NowSource are a means by which product specifications and management of the producers can be controlled by the co-op and still provide easy access for the customer to submit their orders. So again, do you think a co-op environment would work for purchasing print?

Day 1 Wrap-up from On-Demand

Day 1 was a pretty busy day! I did not get a chance to peruse the other exhibitors because we were steady all day in our booth. Show officials stated that the registrations and attendance was on par with last year so it is good to see that attendees and exhibitors were out in full force on day one! If your at the show stop by booth 2411 and say hi! Check back tomorrow as I will have more news regarding Cross-Wind.
John

On-Demand Day #1

Well I survived show set-up...(I actually did not do a whole lot to help) Having my first morning coffee and getting ready to head over to the show floor. Before I do I thought I would share the latest company news.

UPS Stores/MailBoxes Etc. Will utilize the NowPrint Platform for Online Digital Print stores.
Read more here: http://www.graphicartsonline.com/article/CA6646833.html?rssid=258

Getting Ready for the Show

Getting all the last minute details together for the OnDemand show. I will be in the NowDocs booth #2411 so stop by and say high when you get a chance. I would love to dicsuss latest thoughts on the industry and procurement in general.

On Demand Conference

Good Afternoon,
Next week will be a busy week as I will be traveling to Philadelphia for the On-Demand Conference and Expo. I will be in the NowDocs booth (2411) discussing Cross-Wind, and how it can be deployed within an organization to help streamline and reduce time to sourcing and procurement. The show is March 30th through April 2nd so stop in and say hi! And if your interested in a demonstration of Cross-Wind please let me know I will be doing demonstrations on the show floor. Check back here in the next few days for some exciting announcements and I will try to update from the show floor. I will be Twittering while there as well.

Going Green in Procurement

I read an interesting article by Tom Jowitt at TechWorld titled Companies fail to go green on procurement. The sad part is that according to his article only 3 percent of companies in the UK are using a non-paper based procurement system. Which leads me to wonder what the statistics might look like in the U.S.? Unfortunately I did not find a lot of data in this area which leads me to believe that if only 3% in the UK that the numbers in the U.S. are probably not much higher. What interested me even more was the statistics related to Printers, Faxes, and other equipment required to produce a paper copy that ultimately produces Carbon Output. not to mention the money saved in electricty alone.

Manufacturing Survival

Again these are random thoughts on the current economic situation. I, by no means, have any answers or magic pill to help anyone overcome the current situations. I am just offering up babble at this point and hoping something sticks to the wall!!

Suppliers are taking a hard look at production costs and looking to trim cost to widen margins and more importantly win new business. It is a hard time and the survivors will be those that can find cost trimming solutions in their manufacturing. So what is the answer? How do we cut costs? I have cut as deep as I can go! Sound familiar? This is what I am hearing, and the survivors are those that can compare their costs against competitors pricing and find that one last spot to trim. Based on current projections it is likely that suppliers will be in the 1% or less profit range for the next couple of years. Seems reasonable at this point that if you can live within that range and be competitive with the competition, then you can point out the differentiator's that make you stand out. You know...the "I produce a quality product", and the "we provide good customer service" kind of things.

Surving Tough financial times through outsourcing

Today's random thoughts on our economic conditions and how we can weather the current storm.

More companies are turning toward outsourcing services to weather these though economic conditions. We as well as other companies that provide either outsourcing or or technology for outsourcing are seeing an increased interest in our services as companies look for ways to cut costs. Companies are beginning to realize the true value of these systems and services. Small and medium sized companies can benefit from these systems as well as cost of entry is low, and Software as a Service solutions provide the benefit of services and upgrades without requiring additional IT staff or hardware. In a recent article on www.foxnews.com, hospitals are looking to cut coast by outsourcing services. Outsourcing can be done in different ways and utilizing effective estimating and procurement software's can help organizations that have downsized to still look for best pricing with a wide variety of suppliers.

Software as a Service a more viable option in a down economy

As companies look to reduce costs and spending, technology becomes a stronger and more viable option for companies. Specifically, Software as a Service (SaaS) becomes extremely attractive because it helps to maintain or reduce IT costs in a company. SaaS has been known by many for years, of the benefits, but it seems that companies are just now realizing the true benefit from an internal perspective. SaaS means having the same functions and functionalities that are currently enjoyed without the hassle of maintaining IT infrastructure or staff to maintain hardware and facilities. Actually causing dramatic decreases in cost. For companies that are looking for ways to increase effieciency without increasing costs SaaS systems are highly attractive, especially in today's current economic conditions.

Supplier Performance Scores

Your buyers may be having issues with your suppliers and you may not even know it.  How do you know that you are getting what is expected from your suppliers?  How do your suppliers know they are doing what is expected?  I know, there is that annual survey that my suppliers send out asking how they are doing...but I didn't have time to fill that out for the last 3 years in a row.  So I or they don't really know when things are going wrong or right.  One of the easiest things to do is to survey your buyers on each purchase order that they cut to the suppliers and then share that informaiton across the organization.  It can be quick and easy or complex however, the important piece is to get informaiton to both your suppliers and your buyers on how they are doing.  A simple approach is based on Quality, Service, and Price (QSP) or Quality, Service, and Delivery (QSD).  Each of these can be very straightforward and can be scored in a percentage environment.  The example I like to use is the QSD, Mine looks something like this;

Quality = 30% Overall

- Paper Damage (0 - 10) 33% of the category

- Ink Smear (0 - 10) 33% of the category

- Packaging (0 - 10) 33% of the category

Delivery = 50% Overall (Select One)

- Early 80%

- On-Time 100%

- Late 1 Day 80%

- Late 2 Days 60%

- Late 3 Days or More 30%

Service = 20% Overall

- Customer Service (0 - 10) 30% of the category

- Quote on Time (0 - 10) 50% of the category

- Sales Support (0 - 10) 20% of the category

Based on this type of scoring I can provide at least some basic feedback to my suppliers on a per purchase order basis and make the score cumulative so I can see overall how my suppliers are performing.  In addition, setting a base criteria fro performance with your suppliers can help them understand if they are meeting your buyers expectations.  Rating them based on current score (30 or 60 days) and also overall will help both you and them in making decisions about whether the supplier is the right choice to produce a job that is critical to your organization.  

 

Marketings need to track print procurement costs

I was reading a recent article on whattheythink.com by Brian Wolfenden titled: The Future of Print in Marketing Communications. Brian raises a great point in the article; "Today's marketing professionals...They have to make sure that the campaign delivers tangible and quantifiable results quickly. And these results must show a return on investment for the budget they spend on the campaign." Brian goes on in the next paragraph; "As service providers, this offers an opportunity to partner with the marketer to help them produce effective marketing campaigns that have a fresh approach that stresses targeted, customer-centric communications, measurable results and concrete return on investment." These are both excellent points that point back to "Return on Investment."

The key to all of this is knowing what your spend is in the first place and knowing whether or not your getting the best return on that investment. Most companies are still "shooting from the hip" when it comes to tracking spend or evaluating supplier effectiveness. They audit their purchase orders for cost or survey their buyers or buyers of others companies to determine quality delivery from suppliers. All valid tools but time consuming. Tools like Cross-Wind are designed specifically to provide the information to help marketing departments in determining Return on Investment by tracking costs from purchase orders and invoices, and evaluating supplier quality, turnaround, and responsiveness. Getting the best value starts in the estimating phase not in the purchasing phase of a project. In addition, all of these numbers need to come together fast and effectively with your other media spend numbers. Measureable Results...not just in campaign effectiveness but in spend. Am I getting the best quality, delivery, service, and price. You need to have a set of tools in your arsenal that help you to make the best decision regarding return on investment and to do it effectively. It is not a single tool but a set of tools that help you to track the information specific to their areas and then output the data in an effective manner to provide you with a picture of the whole not just a segment. Are you tracking your spend?

Fuel Prices are impacting me now.

Yep it has happened...
The $4.00 a gallon price was my tipping point. Instead of putting the $100.00 in my gas tank I opted to buy a Bicycle and will get pay back by riding my Bike to work for the next two weeks! Yep the cost of the bike will be recouped in just two short weeks. I came to this conclusion on Saturday last. It is a pretty cool looking bike too! (If you ask me!) So I have been riding my bike to work since Monday. My trek to work is not a lengthy one so I should have been thinking about this a long time ago, (I live about a mile away from my office). But I figure the benefits in this are threefold; True I am saving fuel, I am saving money in the long run, AND I am getting some exercise that my doctor has been hounding me about for several years! Granted two miles on the bike is not MUCH exercise but never the less, it is more than I was getting! and who knows maybe the next time my daughter says "Dad wanna go for a ride to the Park?" I might think about taking that on my bike instead of jumping in the car! But we get into our habits and we are constantly looking for convenience over economics.

Sound familiar?

We often do the same thing in print procurement. Instead of taking a little extra time to look at the economics of our actions we revert to what has always been the easiest or "because we've always done it that way." Well now is probably a good time to start looking at the economics a little bit harder. Sure it is our job as print buyers to save, Money, Time, Budget, but maybe when we think we are saving in one area we are costing in another. It goes back to the old Time, Money, Functionality equation again. You save Money but it may cost time and functionality in the process. I am betting most of us look at the Time side of this equation more than the others..."How can I save Time?" Well I am betting it is costing a little more and maybe we are so used to saving that time so much, that we have forgotten what it is like to save in the other areas!

Here's my bike...PRETTY COOL HUH?

The Importance of Supplier Equipment Lists

Patrick Henry blogged a great article recently on Print CEO about the importance of equipment lists to print buyers. I want to expound on this a bit in that not only is it important but as much information as you can provide about your services and capabilities the better. Our customers find that one of the most important pieces in our system is the ability for the supplier to add their equipment to a master list and the ability for the buyer to sort and look for suppliers with certain capabilities. We give the buyers and suppliers a set of profile tools that give them the flexibility to look for or provide information about Equipment, Products, Users, Quality Managers or Key contacts, and any additional profile information the supplier would like to provide to arm the buyer with as much information about their company as possible. Cross-Wind also allows the buying organization to categorize suppliers based on Minority or Women owned businesses and add regions to their supplier base to allow buyers to look for suppliers in certain regions of the country. Those regions can also be defined by the buying organization to tailor to their specific needs. We are also working with our customers to make the supplier profiles even more interactive to give the most information possible to the buyers including current supplier scoring as determined by the buying organization. Equipment lists are extremely important but so is as much information as a supplier can provide to the buyer to help them make a more informed buying decision. Specialized Procurement Platforms (SSP's) should not be about quoting and buying but about informing the buyer.

Cross-Wind® uses Flex to manage the project list

Good Morning,
Often times users are not really concerned with what technology or programming language is being used on their system as long as it works. Well sometimes your computer is not "up" on the latest technology and so sometimes your system is working but your computer isn't working with the system. We have had a few calls in recent days saying that when a user logs into Cross-Wind they can see the header of the page and then a blank page below. The reason for this is that Cross-Wind uses a technology called "Flex" and in order to use this you need to do a minor download that you have probably down a few times before but never realized it. Flex requires that your computer has flash player 9 installed in order to view the project list page. So if your a user and login to see a "Blank" page, go to: http://www.adobe.com/shockwave/download/download.cgi?P1_Prod_Version=ShockwaveFlash
And download the latest version of flash player 9.

Fuel prices impacting print spend?

Appended:
I apparently wrote this before the DOE announced the National average of $3.39 per gallon yesterday afternoon so the news gets better and better! The message is still the same just even more urgent than last week.

According to the Department of Energy's Energy Information Administration, Fuel prices are up 32% over this time last year. From an April 2007 average price of $2.36 per gallon to $3.11 per gallon this week. Diesel Prices currently average $3.95 per gallon up 111 cents since this time last year. Cost of shipping is definitely on the rise, paper is heavy and costly to ship, both to the printer and to the consumer. At the same time personal income has only rose 0.9% in the same period. Companies are taking a hard look at how to cut costs and anything involving freight charges will be scrutinized heavily.

Now is the time to be evaluating print production costs and focus heavily on freight charges.
What is freight costing?
Can I get a better freight cost at the expense of production costs?
Am I better served producing a job closer to the delivery destination?

If you don't have strategic suppliers providing you with cost effective print; YOU ARE LOSING MONEY. No question about it at this point. I would also heavily consider which jobs can be split to make production closer to destination so if you are split shipping consider split production. Ask your suppliers where they are producing if they have multiple facilities and challenge them if they are producing in a plant further from the destination than another plant. Now is not the time to let your suppliers dictate. I believe that the breaking point is very close. The word "Recession" is getting used daily on the news. I heard from a colleague today that his company is now on a hiring freeze. Companies are looking for cost effective ways to measure and source print spend consider looking at sourcing solutions that can help you evaluate based on these and other criteria.

Change is a GOOD thing?

Change
The seasons change, styles change, presidents change, companies change, processes change. Everything changes, it is how we handle change that makes or breaks us. If you do not handle change well the the print industry is probably NOT the place for you. Changes have been occurring since the first printing press. Almost immediately people started to recognize the value and how they could improve upon it. Of course print buying is much the same in that things are constantly changing. In a pre-recessionary environment companies are looking hard at being efficient and saving money where they can sometimes spending money will make you more efficient and that is a hard concept to grasp. More and more companies are looking these days at how technology and systems in general can help improve efficiency and what it will save them.

We are making changes as well to make our technology more efficient to help print buyers be even more efficient. We have made changes to our project list page to allow users to drag and drop projects and to view pertinent information without having to open the project, giving the print buyer the ability to quickly scan a project and be more up to date. In the coming months we are adding reminder and messaging capabilities to allow the buyer to communicate more directly and quicker with their suppliers. We have even made changes to our website; www.cross-wind.com and we will continue to make changes because our customer base demands that we improve. If you are not riding the wave of change you will certainly find yourself under it. So let's go Surfin!!

Cross-Wind® Project List New Release

Good Morning,
The latest Cross-Wind enhancement release includes major changes to the Project List page. The Project List page now includes Drag and Drop capabilities within the project list and allows access to project information by highlighting a specific project. Now while you may be thinking whats the big deal? Well this is all being done within a web based application and without going through page refreshes. The is a HUGE deal!. In addition, you can view which vendors have responded to your project without going to the RFQ page. These changes will impact the way you view your projects and will make management easier. Also, included is the ability to view RFQ's that are coming due and to see which projects have supplier responses. All of this functionality will be available on Monday.

Evaluating Supplier Responsiveness

Supplier Responsiveness is one of the key issues that management teams are always concerned with. "How do I know many suppliers are responding in a timely manner to my requests?" Some might ask "Why should I even be concerned with this?" If you are in an outsourcing environment where you have customers relying on you to provide responses to a request in a timely manner then this becomes extremely important. Even if your customer is an internal customer likely their projects are time sensitive and if your suppliers are not submitting responses in a timely fashion then how responsive can you be to your customers? Well I often hear buyers say; "I have a pretty good idea of market price so I will just submit my own estimated cost with fudge factor built in." EEGGAADDSS!!! Your suppliers are the cost experts, they are the ones that should be supplying you with pricing not by educated guess.

The ability to measure supplier responsiveness is crucial in being able to evaluate your suppliers. Tools should be available to tell you how long it takes a supplier, from the time the request is submitted to the time the request is responded too. On a per request basis and overall for a time period. You should be reporting on the following areas:
Supplier, Quote ID, Time Sent, Time Opened, Time Submitted or Time Declined.
Then from a time range you should be able to evaluate;
Number of Quotes Submitted, Number Responded Too, Percentage of Responded, Number Declined, Percentage of Declined, Average Response Time, Average Decline Time.

This will give the buyer the ability to evaluate supplier responsiveness on an on-going basis to keep suppliers responding in a timely manner. Now if you do not actually DO anything with this information then what good is the information.

What to do with the information -
Once you have begun collecting this information you should make this information accessible to your suppliers instantaneously so a supplier can review at any time and be able to adjust their processes to keep up with your response standards. OH you don't have any response standards? Well take some time (3 to 6 months) to look at your suppliers response time overall and average out based on what ALL of your suppliers response times are and establish a set of criteria to meet your companies needs. There is not a given set of times or national standards for responsiveness, nor should there be. These standards should be set by each company to be able to meet their needs. Suppliers should be informed of your companies expectations and should decide whether they can meet those expectations on a regular basis. If they do not feel they can meet YOUR needs then you should consider whether they are the right supplier choice for your company. I can almost guarantee with a high degree of confidence, that if your expectations are reasonable, that most suppliers can meet those expectations that you establish and if they won't there is a supplier in the industry that will! Suppliers are willing to meet your needs as long as they have a way to be able to measure themselves and to be able to communicate with you when they cannot.
Once your criteria is established and you have communicated that criteria with your suppliers you MUST measure and evaluate them and be willing to call suppliers on the carpet when they do not meet your standards. In other words, some suppliers may pay you lip service when you communicate that criteria so you need to be prepared to implement any penalties that were agreed upon. The first time you issue penalties will likely be the last time you have to issue penalties. Suppliers learn quickly that if they agreed up front and you show that you are serious, they will comply with your standards. If they honestly have looked at their processes and cannot comply they will tell you and likely pull themselves out of the competition. Suppliers are in business to make money just like your company so if something is costing them they would rather walk away than to constantly flush money down a hole.